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GE2022: Total Quality GE2022: Total Quality ManagementManagement
Prepared by:
S.P.SIVAGNANA SUBRAMANIAN
Assistant Professor-Dept. of ECE
Sri Venkateswara college of engineering,
Sriperumbudur, Tamilnadu.
Leadership concepts
• 12 characteristics of quality leaders(refer pgs 30,31 Besterfield)
• 7 Habits of highly effective people ( Pgs. 32-39 Besterfield)
• The Deming philosphy ( Pgs. 39-43 Besterfield)
7 Habits of highly effective people( Stephen Covey)
• Be pro-active• Begin with the end in mind• Put first things first (ref.Covey’s Time
management matrix pg.35)• Think win-win• Seek first to understand,then to be understood• Synergy• Sharpen the saw
Strategic Planning
• Strategic business planning is similar to strategic quality planning.
• 7 steps to strategic planning• Customer needs• Customer positioning• Predict the future• Gap analysis• Closing the gap• Alignment• Implementation.
Strategic Quality Goals and Objectives
• Goals must be focused• Goals must be concrete• Goals must be based on statistical evidence• Goals must have plan or method with
resources• Goals must have a time-frame• Goals must be challenging yet achievable
Seven steps to Quality Planning
• Discover customer needs
• Customer positioning
• Predict the future
• Gap analysis
• Closing the gap
• Alignment
• Implementation
- 7 -
• 1. Customer Needs: The first step is to discover the future needs of the customers. Who will they be? Will your customer base change? What will they want? How will they want? How will the organization meet and exceed expectations?
• 2. Customer Positioning: Next, the planners determine where organization wants to be in relation to the customers. Do they want to retain, reduce, or expand the customer base. Product or services with poor quality performance should be targeted for breakthrough or eliminated. The organization’s needs to concentrate its efforts on areas of excellence.
• 3. Predict the future: Next planners must look into their crystal balls to predict the future conditions that will affect their product or service. Demographics, economics forecasts, and technical assessments or projections are tools that help predict the future.4. Gap Analysis : This step requires the planner to identify the gaps between the current state and the future state of the organization. An analysis of the core values and concepts is an excellent technique for pinpointing gaps.
• 5. Closing the Gap: The plan can now be developed to close the gap by establishing goals and responsibilities. All stakeholders should be included in the development of the plan.
• 6. Alignment: As the plan is developed, it must be aligned with the mission, vision, and core values and concepts of the organization. Without this alignment, the plan will have little chance of success.
• 7. Implementation: This last step is frequently the most difficult. Resources must be allocated to collecting data, designing changes, and overcoming resistance to change. Also part of this step is the monitoring activity to ensure that progress is being made. The planning group should meet at least once a year to assess progress and take any corrective action. - 8 -
Quality Council
• The quality council includes CEO and Senior managers of the functional areas -research,manufacturing,finance,sales ,marketing etc. and one co-ordinator and a union representative.
• Duties- To develop the Quality statements eg. Vision, Mission, Quality policy statements, Core values etc.
• To develop strategic long-term plans and annual quality improvement programme.
• Make a quality training programme• Monitor the costs of poor quality.• Determine the performance measures for the organisation• Always find projects that improve the processes and produce
customer satisfaction.• Establish work-group teams and measure their progress.• Establish and review the recognition and reward system for the
TQM system
Quality statements
• Vision statement – a short declaration of what the organization hopes to be tomorrow.
• Mission statement – a statement of purpose –who we are,who are our customers,what we do , and how we do it.
• Quality policy – is a guide for everyone in the organization ,how they should provide products and services to the customers.
Quality Statements • Quality statements are part of strategic
planning process and once developed, are occasionally reviewed and updated.
• There are three types of quality statements:1.Vision statement
2.Mission statement
3.Quality policy statement
• The utilization of these statements varies from organization to organization. Small organization may use only the quality policy statement
- 11 -
Vision Statement
• The vision statement is a short declaration what an organization aspires to be tomorrow. A vision statement, on the other hand, describes how the future will look if the organization achieves its mission.
• Successful visions are timeless, inspirational, and become deeply shared within the organization, such as:
• IBM’s Service– Apple’s Computing for the masses– Disney theme park’s the happiest place on the
earth, and– Polaroid’s instant photography
- 12 -
Mission Statement• A mission statement concerns what an
organization is all about. The statement answers the questions such as: who we are, who are our customers, what do we do and how do we do it. This statement is usually one paragraph or less in length, easy to understand, and describes the function of the organization. It provides clear statement of purpose for employees, customers, and suppliers.
- 13 -
• An example of mission statement is:– Ford Motor Company is a worldwide leader in
automatic and automotive related products and services as well as the newer industries such as aerospace, communications, and financial services. Our mission is to improve continually our products and services to meet our customers’ needs, allowing us to prosper as a business and to provide a reasonable return on to our shareholders, the owners of our business.
Quality Policy• The quality policy is a guide for everyone in
the organization as to how they should provide products and services to the customers. It should be written by the CEO with feedback from the workforce and be approved by the quality council. A quality policy is a requirement of ISO 9000.
- 15 -
• A simple quality policy is:
– Xerox is a quality company. Quality is the basic business principle for Xerox. Quality means providing our external and internal customers with innovative products and services that fully satisfy their requirements. Quality is the job of every employee.
Customer Satisfaction
• Customer satisfaction model
• Internal and external customers
• Customer perception of quality
• Performance– Features– Service– Warranty– Price – Reputation
- 17 -
Customer complaints / Tools used for collecting customer complaints• Comment card
• Customer questionnaire
• Focus groups
• Toll free telephone numbers
• Customer visits
• Report cards
• Internet and computer
• Employee feedback
- 18 -
Customer satisfaction
• Customer is the Boss or’King’• Customer dictates the market trends and
direction• Customer not only has needs to be
supplied( basic performance functions)• Also he ‘wants what he wants!’( additional
features satisfy him and influence his purchase decision)
• Hence the Suppliers and Manufacturers have to closely follow at the heel of the customer.
Customer Satisfaction Organisational Diagram
• CUSTOMERS
Front-line Staff
Functional DepartmentStaff
CEO
Sr.Mgrs
What is customer satisfaction?
• Is it due to Product quality?
• Is it due to pricing?
• Is it due to good customer service ?
• Is it due to company reputation?
• Is it something more?
Customer types
• External and Internal customers• External – current, prospective and lost customers• Internal – Every person in a process is a customer of
the previous operation.( applies to design,manufacturing,sales,supplies etc.) [Each worker should see that the quality meets expectations of the next person in the supplier-to-customer chain ]
• TQM is commitment to customer-focus - internal and external customers.
Customer/supplier chain
• Inputs from external customers
Internal customers
Outputs to external customers
Internal customer/Supplier relationships
• Questions asked by people to their internal customers
• What do you need from me?
• What do you do with my output?
• Are there any gaps between what you need and what you get?
• Good team-work and inter-Departmental harmony is required. Also the leaders role in supervising the internal customer-supplier chain.
TQM and customer quality percepts
• TQM is quality management and management of quality – there is no full stop and no break in the chain!
• Continuous process (quality) improvement is all its about.
• Why? One important reason is the customer quality level is not static and his expectations keep changing and his demands too!
• Also plant process dynamics- how to achieve maximum efficiency , optimizing cost and performance in the process operations, minimizing waste etc.
User purchase perceptions-from survey
• Performance
• Features
• Service
• Warranty
• Price
• Reputation ( refer pgs.72 and 73, Besterfield)
Customer satisfaction/dissatisfaction feedback
• Customer feedback has to be continuously sought and monitored - not one-time only!( Pro-active! Complaints are a reactive method of finding out there is a problem)
• Customer feedback can be relayed to Mfgr.• Performance comparison with competitors can
be known• Customers needs can be identified• Relative priorities of quality can be obtained
from the horses’ mouth!• Areas for improvement can be noted.
Customer feedback methods
• Comment cards enclosed with warranty card when product is purchased.
• Customer survey and questionnaire• Customer visits• Customer focus groups• Quarterly reports• Toll-free phones• e-mail, Internet newsgroups,discussion forums• Employee feedback• Mass customization.
Customers- Handle with care!
• Employers don’t pay wages but it is the customer who pays the wages!
• So take good care of your customers.• Customer-care centres not just profit-centres!• The entire organization must in effect revolve around
the customer – whether the customer is being well served and if he is really pleased,contented and satisfied with the service you have to offer.
Service Quality• (i )Organisation• Identify each market
segment• Write down the
requirements• Communicate the
requirements• Organise processes• Organise physical
spaces
Service Quality
• (ii) Customer Care• Meet the customer’s expectations• Get the customer’s point of view• Deliver what is promised• Make the customer feel valued• Respond to all complaints• Over-respond to the customer• Provide a clean and comfortable customer reception
area.
Service Quality
• (iii) Communication• Optimize the trade-off between time and
personal attention• Minimize the number of contact points• Provide pleasant,knowledgable and
enthusiastic employees• Write documents in customer-friendly
language.
Service Quality• (iv) Front-line people• Hire people who like people• Challenge them to develop better methods• Give them the authority to solve problems• Serve them as internal customers• Be sure they are adequately trained• Recognise and reward performance
Service quality
• (v)Leadership
• Lead by example
• Listen to the front-line people
• Strive for continuous process improvement (Pgs. 88-93 Besterfield)
Customer Care• Keep promises to customers• Return customer calls promptly• Allot staff to handle customer problems• Treat customers with courtesy,respect and
professionalism always• Evaluate customer satisfaction regularly• Search for customer-related improvements continuously• Deliver Products/Service promptly and efficiently• Give every customer complete and personal attention.
Customer Care• Maintain a neat and clean appearance of self and
work-place,at all times• Review and implement customer feedback and
suggestions into current procedures when needed
• Training and education to enhance job performance and commitment to customer care
• Treat every customer as we would treat ourselves. ( Pg. 90, Besterfield)
Kano Model-conceptualises customer requirements
• Exciters-Quickly expected Easily identified
Typically performance related
Customersatisfied
Customer Not satisfied
Requirementsatisfied
Requirement Not satisfied
Innovations
Unspoken-but expectedrequirements
Spoken andexpected requirements
Known only to experienceddesigners or discovered late
Customer Retention
• Customer satisfaction should lead to customer loyalty and customer retention.
• This is the acid test and bottom line- when the customer repeatedly comes back to you for repeat orders and to purchase new products mfgrd. by you. (In spite of stiff competition and multiple Suppliers/Sources! )
• Firm orders received or cash payments registered , market share, customer referrals and customer retention are an indication of your customer success and penetration .
Motivation
• Maslow’s Hierarchy of Needs• Herzberg’s Two-Factor Theory
• Achieving a motivated task-force
(Pgs.104-105 Besterfield) Know thyself,Know your employees, Establish a positive attitude, share the goals,Monitor progress,Develop intersting work,Communicate effectively, Celebrate success.
Empowerment
• To invest people with authority –to tap the potential in every worker (avoid the wastage of unrealised capacity)
• People have the ability,confidence and commitment to take the responsibility and ownership to improve the process, and initiate the necessary steps to satisfy customer requirements within well-defined boundaries in order to achieve organisational goals.
Conditions for empowerment
• Everyone must understand the need for change
• The system needs to change to the new paradigm
• The organisation must enable its employees.
• Teams (Pgs. 109-124 Besterfield)
Continuous Process Improvement
• Process refers to business and production activities of an Organisation.
• Processes for improvement- eg. Design & Manufacturing,Marketing,Stores & Purchase,etc.
• Inputs of the Process- Manpower,materials,money,data,etc. Outputs- Products,Services,data etc. Outputs need performance measures – main outcome being customer satisfaction.(feedback is used to improve the process)
Continuous Process Improvement
• Process refers to business and production activities of an organisation
• Business processes-Manufacturing,Design, Sales,Purchase,Stores etc.are areas where non-conformance can be reduced and processes improved
Continuous Process Improvement
•
INPUTMaterialsMoney
Data,etc.
PROCESSPeople
EquipmentMethod
EnvironmentMaterials
Procedures
OUTPUTInformation
DataProduct
Service,etc.
CONDITIONS
O/P
FEEDBACK
Five ways to Improve a Process
• Reduce resources• Reduce errors• Meet or exceed expectations of
internal/external customers• Make the process safer• Make the process more satisfying to
the person doing it.
Continuous Process Improvement
• Juran’s Trilogy
• Shewhart’s Plan-Do-Study-Act cycle
• Kaizen- making small incremental improvements to the individual and the organisation. (Pgs. 140-160,Besterfield)
Juran’s Trilogy
• Three components - PLANNING,CONTROL AND IMPROVEMENT
• Based on financial processes ,such as budgeting(planning), expense measurement(control), and cost reduction (improvement)
Quality planning
Cost of poor quality
Operation region
Original zone of Quality control
New zone of quality control
Quality Control- during Operations
0
0
20
40
Time
Sporadic spike
Chronic waste Opportunity for improvement. Quality improvement
Lessons learned
The Juran Trilogy Diagram
PDSA cycle- seven steps or phases
• Identify the opportunity• Analyze the current process• Develop the optimal solution(s)• Implement changes• Study the results• Standardise the solution• Plan for the future.
Continuous Process Improvement cycle
Phase I Identify the Opportunity
Phase 2
Analyze the process
Phase 3
Develop the optimal solution(s)
Phase 4 ImplementationPhae 5 Study the results
Phase 7
Plan for the future
Phase 6
Standardise the solution
Act Plan
DoStudy
Phase I Identify the Opportunity
Phase 2
Analyze the process
Phase 3
Develop the optimal solution(s)
Phase 4 ImplementationPhae 5 Study the results
Phase 7
Plan for the future
Phase 6
Standardise the solution
TQM principles from the Japanese
• The 3 K Method
• Kimerareta Kotoo – What has been decided
• Kimerareta Tori – must be followed
• Kichim to Mamorukoto – as per standard.
The 5S Method
• Seiko - Sort ( Proper arrangement )• Seiton - Set ( Systematic or
Orderliness )• Seiso - Shine ( Sweep or clean-up )• Seiketso - Standard ( Personal
cleanliness )• Shitsuke - Sustain ( Self-discipline )
Kaizen Technique
• Kaizen- defines the managements role in continuously encouraging and implementing small improvements in the individual & organization.
• Break the complex process into sub-processes and then improve the sub-processes.
• Continuous improvements in small increments make the process more efficient ,controllable and adaptable.
• Does not rely on more expense,or sophisticated equipment and techniques.
Kaizen
• Value and non-value added work activities
• Muda-seven classes of waste• Principles of motion study and work-
cell use• Principles of materials handling and
use of one-piece flow• Documentation of standard
operating procedures• The 5S’s• Visual displays for communicating
to factory personnel• JIT- to produce right quantities at
right time and with right resources• Poka-yoke to prevent or detect
errors• Team dynamics – problem
solving ,comm.,conflict resoln.
Employee Involvement
Employee Involvement is one approach to improving quality and productivity.
Motivation:- By Needs, Desire, Monetary Benefits, Incentives, Promotions, Facilities, Recognition, Etc.
Need For Employee Involvement To take Right Decision Making Full Knowledge & Skill to be used Solve Problems Morale & Commitment Leadership Creativity & Innovation
HERZBERG’S TWO-FACTOR THEORY
MOTIVATORS Recognition, Responsibility Achievement Promotion Work Environment
HYGIENE or DISSATISFIERS FACTORS Low Salary Minimum Benefits Poor Working Conditions, I ll Defined Organization Policies Partiality Perks
Motivated Work Force
• Know Thyself• Know your Employees• Establish a Positive Attitude• Share the goal• Monitor Progress• Develop Interesting Work-Job Rotation,
Enlargement & Enrichment.• Communicate & Celebrate Success
TEAMSDEFINITIONA Team is defined as a group of people working together to achieve
common Objectives or Goals.
WHY TEAMS WORK More Knowledgeable Special Abilities Pool Together More Interaction More Cordial Relationship & Better Job Better Communication
TYPES OF TEAMS Process Improvement Team
Cross-Functional Team
Self Directed Teams
Natural Work Teams
DECISION-MAKING METHOD
No DecisionUnilateral DecisionHand Clasp DecisionMinority- Rule DecisionMajority- Rule DecisionConsensus
Barriers to Team Progress
• Insufficient Training• Incompatible Compensation• First Line Supervisor Resistance • Lack of Planning• Lack of Management Support• Lack Union Support• Project Scope Too Large • No Clear Measure of Success• No Sufficient Time Given
Benefits of Employee Involvement
• Empowering • Better Decisions• Better improvement• Corrective Action• Effective Cooperation &Communication• Loyalty Increases & Floating Population
Reduces• More Money to Share
SUPPLIER PARTNERSHIP An efficient SCM , built on strong
partnerships will create high levels of people satisfaction and customer satisfaction.
Ensuring the partnership processes for an organization is use of QMS Audits,
reviews and action plans.Partnership are Planned and managed must be in line with overall policies and
strategies and support the operation of the processes.
Principle’s of Customer & Supplier Partnership by Dr Kaoru Ishikawa
• Customer & Supplier are fully Responsible for Control for Quality.
• Customer & Supplier are Independent of each other.
• Customer’s must be given full Information about the raw material, semi finished products (or) services required.
• Clear Contract regarding Quality, Quantity, Price, Delivery Modes, Etc.
Principle’s of Customer & Supplier Partnership by Dr Kaoru Ishikawa
• Evaluation of Same Quality Standards by Both the Customers & Suppliers
• Problem Solving By Discussion
• Exchange Information & Feed Back
• Both Customer & Supplier do Business transaction w.r.t. END USER.
SUPPLIER SELECTION BASED ON• Quality Philosophy of the Customer• Stable Management• High Technical Standards With Future • Raw materials & Parts Meet Quality Std• Delivery as per Schedule• Effective Quality System• Record of Customer Satisfaction Credibility
in Industries
Supplier Rating
• Quality
• On Time delivery
• Service
• Internal Structure
• Customer Satisfaction
• Review Reports
Potential Pitfalls of Partnership
• Fear of Unknown Concept
• Starting Early
• Poor Communication
• Impatience
• Mistrust
• Over dependency
• Time & Resources
PERFORMANCE MEASURE IN TQM
• Performance can be expressed in Financial & Non Financial Terms.
• Performance Measure Provides the right direction.
• Performance Based on Quality, Product, Service, Process, Sales, Customer Satisfaction, Cost Reduction.
• Performance Shows Whether the Organization makes Profit (or) Loss
Performance Based On
• Objectives
• Customers
• Suppliers
• Production
• Human Resources
• R & D
• Marketing / Sales
Strategic Measurement System
• Quality
• Cost
• Flexibility
• Innovation
• Reliability
• Graphs, Bar Diagram, Control Charts
• Taguchi Loss Function